694.0031.12–545
The Secretary of State to the Australian Minister (Eggleston)44
Sir: I have the honor to inform you that the Supreme Commander for the Allied Powers has reported to the United States Government that he has located the following stockpiles of material in Japan: rubber—10,000 tons; tin—4,200 tons; antimony—1,017 tons. He has also stated that although there are important uses to which these materials can be put in Japan, some portion of them can be made available for export if they are urgently required. The United States Government proposes to request him to maximize the amounts available for export by requiring the Japanese to adopt at least as strict conservation and substitution measures in the use of these materials as were adopted in the Allied countries during the war. On this basis it is believed that the major portion of the stockpiles can be exported.
It is the policy of the United States Government and of the Supreme Commander to require the Japanese to supply exports to pay for imports necessary to maintain minimum subsistence levels. It is important that decisions be made promptly with respect to the disposition of these commodities in order that essential imports can be procured without having to use United States Government appropriated funds. In order to accomplish this, it is also necessary to export these commodities to countries which can pay for them in exchange which can be used in the purchase of imports essential to the minimum requirements of the Japanese.
The United States has important requirements for the total available quantities of each of these three items and is prepared to pay for them in dollars usable anywhere for the procurement of necessary imports. It would be appreciated if your government can agree to immediate shipment from Japan of exportable amounts of rubber, tin, and antimony to the United States, subject to future reallocation, if necessary, by the Department of State acting in consultation with the governments represented on the Far Eastern Advisory Commission [Page 878] and with the international allocation authorities operating under the auspices of the Combined Raw Materials Boards. It is our understanding that shipment of these commodities to the United States is in accordance with the current pattern of world trade and it is believed would be approved by the Combined Raw Materials Boards. If reshipment is decided upon the United States Government will undertake to make the necessary arrangements. Because of the urgency of this matter a prompt reply from your government would be greatly appreciated. A similar communication is being addressed to each country invited to sit on the Far Eastern Advisory Commission.
For your information, it is the policy of the United States Government that for the present it is unwise for security reasons for Japanese nationals to have any direct commercial contact with nationals of the United States or of other countries. Therefore, arrangements have been made for the United States Commercial Company, a subsidiary of the Reconstruction Finance Corporation and an agency of the United States Government, to receive goods from the Supreme Commander and deliver them to consumers as directed by this Government. Its services might be available for deliveries to any other government or country if requested.
This method for arriving at decisions with respect to exports from Japan represented by this note is considered to be temporary. The United States Government will probably propose to the Far Eastern Advisory Commission at an early date that there be set up an Inter-Allied Supply Committee, perhaps as a subcommittee of the Far Eastern Advisory Commission, as a vehicle for consultation between interested countries with respect to disposition of exports from Japan. This Government wall probably recommend that such a committee focus its attention particularly on goods in short world supply, permitting other types of products to be distributed to the purchaser offering the highest price, providing that exchange or goods are made available which can be used in meeting the minimum essential requirements of the Japanese for imports.
Discussions are now proceeding looking towards the coordination of the responsibilities of such a committee, if it were set up, with other international arrangements for allocating commodities in short world supply.
Accept [etc.]
- Sent also to other Missions represented on the Far Eastern Advisory Commission. Replies were received from the Philippines (December 5) and China (December 20) assenting to the American policy; and from New Zealand (December 18), France (December 29), Canada (January 3, 1946), India (January 4), and the Netherlands (January 21) asking for further information or stating a reservation.↩